Apple's 128GB iPad Just Gave Every Android Tablet Manufacturer A Headache

Apple's announcement of a new iPad SKU with 128GB of storage is a wonderful tactical stroke. While consumers are going to love the extra choice, and hardcore users will flock to the extra storage capacity, it's the Android tablet manufacturers that are going to be crunching the numbers overnight.

By increasing the top level of storage on the iPad, it will drive public perception towards 'tablets should have 128GB of storage'. That 128GB has been seen as a psychological target by many people looking at iOS devices, and now it's here (and is following the standard Apple model of doubling storage for $100 more) many will say it was obvious.

Importantly for Apple, they've got their tablet with the magic numbers on sale first.

The competition are still kicking around at the 64GB mark, although some are not even that close. The Nexus 10? 16GB or 32 GB. The Galaxy Note? 16GB to 64Gb. The BlackBerry PlayBook? 16GB to 64GB. The Kindle Fire? 16GB to 32GB for the seven inch, and 64GB for the 8.9 inch.

Apple has topped them all, and the other manufacturers are going to have to start offering higher specs in storage or run the risk of being left behind in what is the next step in a specification war.

Always fight on territory that is comfortable to you, and awkward for your opponents. There's probably a Sun Tzu quote that covers that, but the principle stands..

If there's one thing everyone can agree on, it's that TIm Cook understands the supply chain, and can extract the maximum value out of it. Under his guidance Apple has better access, at preferential rates, to more component suppliers than the majority of other manufacturers. The iPad 4 with 128GB hits the stores in seven days, and the competition are left standing still.

Even if they wanted to react, they're going to be at a disadvantage in terms of manufacturing and sourcing supplies (unless they had plans in place already). Once they do reach the shops, it will still be first mover advantage to Apple, and their public perception as innovators remains.

As for the rapidly rising cost of memory pushing up the bill of materials, this matters less to Apple, a company that can traditionally keep prices high. But Android devices, many of which are built to a specified cost and occupy the lower end of the price scales, will have less room to absorb around an increased production cost.

The 128GB iPad is an attractive product for a number of iPad users, but I suspect that the knock-on effects in the rest of the tablet space are a very nice bonus for Tim Cook and his team at Apple.